Neighborhood Community of Newnan seized - Birmingham Business Journal:

http://pscsafetyproducts.com/proctor.htm
, based in West Point, Ga., will assume all of Neighborhood Community’s $191 million in total deposits, and will take on $209 millionm of the failed bank’s assets, accordin to a release. Neighborhood Community’s loan and depositr customers will automatically becomrCharterBank customers. The FDIC and CharterBank entered intoa loss-sharew transaction, a method that is becoming a common vehicle for the FDIC to unloadx failed banks. Under the deal, the regulator will absorb losses on as muchas $171 milliom of the assets purchased by CharterBank.
The deposiy insurer stated in a release the deal will be the least costlt forthe FDIC’s insuranc fund and will minimizew disruption for loan customers. The FDIC estimated the cost of the failure to the insurance fund willbe $66.y million. Neighborhood Community opened inApril 2000, and operated four officee throughout the south metro in Newnan, Tyrones and Peachtree City. The branchesd will re-open Monday as CharterBani branches, and will permanently becomw CharterBank branches. Robert CharterBank CEO, said the acquisition was an extension ofhis bank’x West Georgia market closer to Atlanta, alonhg the Interstate 85 corridor.
CharterBank is headquartered nearthe Alabama/Georgi border along I-85, and operates branchess throughout the border region. The bank operates five branches in West andhas $800 million in total assets. Johnson said his bank would continues to look at other distressed banks along the corridotr toadd branches, deposits and loans as a path for “Customers should know that it will be business as usua for both their deposits and Johnson said, noting two branches will be open tomorrow for customers. The list of Atlanta-arewa banks felled by bad bets on real estatd loans continuesto swell.
As of firsyt quarter 2009, Neighborhood Community reported $163 million in total but one-third of those loans were in some stagdof delinquency, default, foreclosure or repossession by the bank. The bank reporteds only $5.2 million in totalk equity, which could not absorv the potential losseson $15 million in foreclosed real estate, and $31 milliobn in loans that appeared unlikely to be repaid. At the time of its the bank had a Texas Ratio of 346 The ratio has becam e a common industry metric inthe S&L and measures total loan problemds to equity capital, or the size of the bank’zs problems with its ability to absorb the Most Georgia banks that have failed have reportedf a Texas Ratio higher than 300 percent.
Earlierf Friday, state banking regulators seizedVilla Rica-basefd Community Bank of West No bidder was found for Community Bank’s operations one branch in the Atlanta suburb — and the bank will be